Survey reveals huge rise in industrial property take up

Survey reveals huge rise in industrial property take up

Take-up of industrial properties of more than 100,000 sq ft hit new records in 2013, according to a new survey.

Some 34 deals involving these properties took place, totalling 8.7 million sq ft, a massive improvement on 2012’s 22 deals totalling 5.2 million sq ft.

David Binks, industrial partner at Cushman & Wakefield in Birmingham, said: “Last year was
the highest for take-up since the financial crisis of 2008.

“The big problem now is that we are limited by a lack of ‘Grade A’ stock above 100,000 sq ft. After six lettings of such buildings last year, there are only three left in the entire region.”

At the same time as take-up has risen, so has demand. According to Cushman & Wakefield’s statistics for the year, the number of enquiries increased by ten per cent in 2013, when compared with 2012. Among the 34 deals in 2013 was supermarket giant Sainsbury taking up a one million sq ft property at the Prologis site at Daventry International Rail Freight Terminal.

Binks added: “As confidence continues to grow occupiers are feeling less risk averse,
with more willing to commit to having bespoke facilities constructed and making longer
term commitments.”